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Amazon FBA for Beginners and Experts Explained – The #1 Guide for a $10,000 Per Month Revenue Account

Looking to sell stuff online to customers hungry for new products? The Fulfillment by Amazon (ie Amazon FBA) just might be the thing for you!

The idea of passive income is still a powerful thing that persists to this day, and it gives aspiring entrepreneurs (both beginners and experts alike) an opportunity to make a business on the side to supplement their full-time jobs; or perhaps just make the online business itself full-time to give them the lifestyle they want!

How Much Do FBA Sellers Make?

Amazon FBA sellers have the potential to make at least $10,000 per month. This is not a definitive figure as Amazon FBA businesses vary greatly based on the different types of products that are sold online from individual vendors. Competition is fierce in the internet space. And it’s going to take effort on the entrepreneur’s part to ensure that they succeed.

The key word in the last paragraph is *potential*. You need to have a grounded understanding of Amazon FBA policies before you opt to do anything else afterwards. Once that’s done, you can figure out what you want to have as your initial inventory of products for sale. After you sold your first set and feel you have reached a threshold that you’re comfortable with, say, $1000 per month. Then you can move on and see what other products you can sell online.

How Successful are Amazon Sellers?

Sellers that utilize Amazon FBA as their main platform to sell products are only as successful based upon the amount of work and effort put into it. Amazon FBA is not designed to be a ‘get rich quick’ scheme. But it is still a great way to generate revenue while you sleep.

The internet space is very competitive, and there is no guarantee for success. Like any other business, Amazon FBA owners will have their ups and downs. Make it a point to self-educate yourself continuously and conduct your own personal research, by reading through forums such as Reddit on people who have used Amazon FBA themselves. It’s a good opportunity to weigh the pros and cons of the program to see if you’re comfortable with using the program.

Since selling on Amazon tends to be fiercely competitive, here are some key points to keep in mind:

– When making money, items that are easy to ship and priced in a profitable manner needs to still be in demand and easy to find. They also aren’t being sold by big brand names (including major vendors tied directly to Amazon itself).
– Items can be found under multiple categories and keywords when you search them
– Rankings of products on Amazon are typically marked as less than 5,000, in addition to having fewer than 50 product reviews when similar items are listed in the search query.

You also need to get used to the idea that whatever you initially sell won’t necessarily launch you quickly into riches. Just like their brick-and-mortar counterparts, online businesses can potentially fail It’s normal for businesses to fail. Only by learning what works and what doesn’t when it comes to your new FBA online business will you be able to succeed.

What are Amazon’s Selling Fees?

Amazon has some pretty strict operating requirements when it comes to the FBA program. Currently, there are two types of fees associated with FBA: account fees and referral fees When it comes to selling products, The program has an account fee for $39.99 per month for professional sellers. Referral fees are listed separately.

Referral fees for Amazon products are applied to items that are greater than $1 or 2$. The difference in the referral fees are based on what categories the products themselves are sold under. Case examples of the two different product fees are clothes having the $1 referral fee applied, while jewelry has the $2 referral fee applied.

For anything pertaining to media-related sales, a flat $1.80 charge is applied on top of the referral fees that are already applied to media-type items themselves. This includes:

– DVDs and CDs
– Gaming consoles and discs
– Software
– Books
– Music

What is Amazon FBA Program?

Amazon FBA is an affiliate/dropshipping program operated by its parent company of the same name, giving upcoming entrepreneurs that have been looking for a way in which to sell online products to customers anywhere in the world. The FBA platform gives exactly that, dedicating an online space in which you’ll be able to operate your business provided you’re willing to put time and money into it.

When it comes to your business, Amazon will handle 90% of the logistical legwork. This includes storing, handling and customer support. Bear in mind that like dealing with anything in life, there are certain risks associated with the program. You need to remember that Amazon owns the FBA, and gives the means for entrepreneurs to sell whatever they want online.

With that being said, Amazon is the primary authority that dictates policy as to what can and cannot be done on its platform. Since FBA is part of its brand, it can pretty much do anything it wants without your consent (something to be very conscious about).

How Much Does It Cost to Start Amazon FBA?

As a baseline, sellers can expect to spend at least $3000 if they want to start selling right away with an initial inventory of 500 products. They will need to take into account initial development costs of the product they want to sell (case example would $5 on average per product). This doesn’t include the marketing pieces necessarily to ensure that your storefront remains online, such as copywriting for product descriptions, pictures of the products, etc.

One of the reasons why prospective business people turn away from opportunities is the startup costs associated with starting a new business. FBA is relatively low and people were reported to make at least 66% profitability from sales back in 2018. During that same year, monthly profits for FBA businesses who have been in operation for at least 18 months were reported to make $10,000 per month.

While small businesses won’t necessarily make that money right away, whatever products are sold through individual spaces will still make them small amounts of money each month. It is recommended to get a small business loan vice using your own finances to help start your FBA business. Entities like Lending Club are popular in this instance, since they have P2P (person to person) loans which can be forwarded to you quickly. Loan values can amount from 5k to 300k but will usually require proof that you have at least 50k in annual sales.

What’s the Best Amazon FBA Courses?

If you’re looking into getting a more grounded understanding of Amazon FBA, there are plenty of Youtube tutorial videos and courses hosted online that are solely devoted to the finer intricacies of the program. Udemy hosts a large number of these courses taught by actual Amazon FBA business owners that have been successful in running their own businesses online.

While the courses are typically priced at around $200 each, the value of the courses themselves cannot be understated. You can wait until during holiday periods throughout the year in which Udemy puts out significant discounts for the courses taught online. The discounts themselves go as high as 90%, which is a huge savings boon for prospective buyers looking to learn about Amazon FBA.

If you’re looking to start an Amazon FBA business, spending $10 on a course through Udemy would pay off dividends in the long run. There are also finance and business forums online that have topics dedicated to FBA itself, which would serve as excellent study points as to what worked for them.

What Are the Most Profitable Products to Sell Online?

There are plenty of products that can be sold to generate profit. However, it is the seller’s responsibility (ie you) to research market trends and find out what’s hot and what’s not. In other words, you’ll need to find out what people like to spend their money on. Try Jungle Scout because it can be very useful for gathering the data you need.

Currently, Some of the Best Products Are:

– Books, ie the non-Kindle variety that folks like to touch and read via pen and ink vs reading from a screen
– Electronics, because there’s no shortage of high-tech goodies that seem to come out of nowhere every year. The Razor Blade Stealth 13.3-inch graphics version is a key example of that
– Baby products
– Customized jewelry made of original materials

The items that’s been listed are just a sampling of items that offer at least 10-20% profitability. FBA business owners need to validate that whatever products that they are selling within their spaces are allowed to be sold under the 20 product categories that Amazon has available. Examples of the categories that can be sold are:

– Cell phone and accessories
– Entertainment Collectibles
– Personal electronics
– Musical instruments
– Outdoor products

What Can I Sell To Make Money Online?

Amazon FBA sellers can sell almost anything online. You don’t necessarily need to have your own products to sell to your prospects. However, it would be more ideal for entrepreneurs like yourself to have private label products since they will give you a greater degree of control as opposed to standard branded products.

Again, Jungle Scout is an excellent product research tool that FBA entrepreneurs can use to research the hottest trends online. It’s a supplement to FBA that provides metrics to track top-selling items within the FBA space.